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IMF: Wealthy and Poor Countries Face COVID Economic Challenges

international | economics and finance | press release

Wednesday October 13, 2021 15:25

by Comms Manager, olivia@jubileeusa.org - Jubilee USA

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The IMF World Economic Outlook report lowered economic growth projections for wealthy and poor countries. The IMF forecasts 5.9% global economic growth.

The IMF World Economic Outlook report lowered economic growth projections for wealthy and poor countries. The IMF forecasts 5.9% global economic growth.

"What's most striking is that we are looking at economies declining both in wealthy and poor countries," said Eric LeCompte, the Executive Director of Jubilee USA Network. "Because the pandemic is impacting so many developing economies, the United States and other wealthy economies face supply shortages."

The IMF flagship report notes prolonged economic challenges while more than 96% of populations in low-income countries remain unvaccinated.

"The possibility of new COVID variants emerging is the biggest concern for the future of the global economy," added LeCompte. "Vaccines are a priority and proactive policies to deal with the global debt and health crises are essential for a return to sustainable economic growth."

Rising COVID infections and growing economic uncertainty are significant concerns according to a second IMF report released, the Global Financial Stability Report. The report warns of inflation concerns.

"Food prices are rising when too many countries struggle with economies in turmoil," shared LeCompte. "The highest food price increases are in countries where access to food is already a problem."

The IMF's stability report highlighted climate risks.

"One of the greatest threats to economic stability is the shocks that economies face due to climate change."

Read the Jubilee USA Statement on IMF World Economic Outlook Report here.
https://www.jubileeusa.org/jusa_ps_weo?utm_campaign=pr_weo_and_gfsr&utm_medium=email&utm_source=jubileeusa

Read the Jubilee USA Statement on Global Financial Stability Report here.
https://www.jubileeusa.org/jusa_ps_gfsr?utm_campaign=pr_weo_and_gfsr&utm_medium=email&utm_source=jubileeusa

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